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Greater MontréalA Great Place to Invest in FinTech
ContentMontréal: A Leading
Financial Centre
p.03
01A Deep and
Growing Pool of
Highly Qualified
Talent
p.14
02 03 04Attractive Operating
Costs
and Incentives
p.19
Montréal
International’s
Personalized,
Free and
Confidential
Services
p.29
Mural painting representing Leonard Cohen © Henry MacDonald
01Montréal: A LeadingFinancial Centre
4
A leading financial centre
Montréal is the 6th largest International Financial
Centre in North America according to the 2019 Global
Financial Centers Index
100,000 jobs in more than 3,000 companies
50% in Banking and Financial Intermediation
30% in Insurance
15% in Securities and Fund Management
Montréal’s Financial Services industry
generates 6.3% of the region’s GDP
250 pension funds in Greater Montréal (CDPQ,
Hydro-Québec, Air Canada, CN, etc.)
Pole on Retirement Applied Research (PRAR)
Source: Finance Montréal 2018; Pitchbook, 2019.
LOS ANGELES
VANCOUVERTORONTO
BOSTON
NEW YORK
WASHINGTON
LONDON
PARIS
MONTRÉAL
CHICAGO
5
An amazing playground for FinTechs
Almost 50 International Financial Centres,
including three bank headquarters and the
biggest credit union in Canada
150 foreign-controlled financial institutions and
FinTechs, which represents roughly 40% of
financial-related jobs found in the city
Four business schools and four universities
with renowned engineering programs
An operating cost advantage of 27% for a FinTech
company compared to the average of the 20
largest metropolitan areas in Canada and the U.S.
Source: Finance Montréal 2018; Pitchbook, 2019; fDi Benchmark, 2019. Old Port, Grande-Roue and downtown Montréal © Loïc Romer
6
FinTech specialized VCs
Montréal has an extensive network of venture capital investors
Source: Canadian Report “Money Tree”, PwC Canada | CB Insights, 2019.
A strong financial
industry that invests
in innovation:
CA$861M in Venture
Capital investments (74
deals) for 2018
7
Greater Montréal: a hub of key technology accelerators and incubators
Source: “Accelerating development in Montréal’s FinTech ecosystem Findings and recommendations”, EY, 2016.
Accelerator specialized in FinTech and AI McGill University accelerator
Accelerator specialized in digital
transformation for major financial
institutions
Specialized services for startup and
development-stage tech companies
Accelerator/platform which provides capital
to support FinTech startups
Acceleration program focused on
the pre-seed to seed stage
Investment and development hub serving
organizations but not startups Concordia University accelerato
University of Montréal accelerator
(Polytechnique, HEC, UdeM)
A physical campus dedicated to
supporting the Montréal Startup
ecosystem
Specialized in blockchain and cryptoassets Emerging technologies accelerator
École de technologie supérieure
accelerator
8
More than 1,000 scientists (professors,
professionals and students) with
complementary areas of expertise
A unique, interconnected & collaborative ecosystem of AI researchers, startups and major players
Note: All values are in CA$.
#1 for publications worldwide
Over 40 academic programs
$93.5 M from the First Research
Excellence Fund (2016)
$100 M over the next 5 years for the creation
of a Québec AI cluster (2017)
$40 M over the next 5 years for the creation
of a Québec AI cluster (2017)
Montréal chosen as headquarters for SCALE AI,
the only Canadian AI cluster
$313 M For Scale AI Supercluster (2018) and
for the development of AI talents
(2019)
$329 M over the next 5 years to accelerate the
adoption of AI in Québec (2019)
9
Montréal ranks in the top 20 of Compass’ Global Startup Ecosystem Ranking, and is home to a growing FinTech community
Mobile and electronic
payments
Cryptocurencies
AI/big data/integrators Financial software and
engineering
10
Montréal has emerged as a key regional platform to supportNorth American activities
2017
2008
1500+ jobs
and growing
2009
50+ jobs
2016
2018
75+ jobs
6+ jobs
2011
300+ jobs
2013-14
300+ jobs
50+ jobs
Recent key foreign investments in FinTech
2007 2019
Loyal and diverse pool of
employees
“The Centre prides itself on a high
employee retention rate. To maintain
the loyalty of its employees, the
company’s location has to have a big
appeal. Being in Montréal is definitely a
plus for our employees. They come
from all corners of the world and
appreciate the cosmopolitan nature of
the city.”
Set up in 2008,
Morgan Stanley has grown
its workforce to 1,500
employees in software
development.
Montréal as the most cost-
effective and valuable site
location
“Our decision was based on a market study
that looked at the availability of skills in
local markets, market size, costs, local
incentives, university programs and
number of graduates.”
100% technology-based centre
“We like to hire really smart problem
solvers, and Québec universities are
producing the kind of talent we need.”
Customers include major Canadian
financial institutions such as CIBC Wood
Gundy, TD, National Bank of Canada
(NBC), and Desjardins.
Costs & incentives
For the last 10 years, savings due to
the R&D tax credit & Development of E-
Business tax credit have fueled the
company’s growth.
Lower operating costs and availability
of affordable office space have
facilitated the scale-up: IT employees in
Montréal are 6% cheaper than in
Toronto and the office space is 17%
cheaper.A testimonial from Alan Vesprini,
Managing Director
12
Samples of leading companies based in Montréal: Mobile & Electronic Payments
Mobeewave develops a platform which
turns your smartphone into a payment
terminal.
The company closed a US$16.5 million
series B round in November 2018 led by
NewAlpha Asset Management, Mastercard
and Forestay Capital.
Mobeewave also increases Series B
Round with investment from Samsung
Venture Investment Corporation bringing
the total amount to almost US$20 million
in January 2019.
Lightspeed provides point of sale (POS)
systems.
The company raised a US$166 million
series D round in 2017.
Tech unicorn stock jumps after TSX initial
public offering (IPO) in March 2019:
Lightspeed issued 15-million subordinate
voting shares at a price of $16 per share,
resulting in gross proceeds of CA$240
million.
13
World’s largest ecosystem for Cryptocurrency & Blockchain startups
Montréal is one of the world’s leading blockchain
hubs: 38% of Canada’s cryptocurrency and
blockchain companies are based in Montréal. The city
boasts an active bitcoin community that gathers over
24 companies, and 25 bitcoin ATMs for low-value
transactions and money transfers, the highest number
in Canada.
Co-founded by Montréal
entrepreneur Austin Hill,
blockstream, a blockchain
technology company, has
raised $25M in series B funding
from DG lab fund.
Scaling Bitcoin Workshop, the
world’s largest gathering of
bitcoin developers, took place
in Montréal in early September
2015.
Source: Betakit, 2019.
02
Mural painting representing Leonard Cohen © Tourisme Montréal - Madore - Daphne CARON
A Deep and Growing Pool of Highly Qualified Talent
15
Montréal’s workforce of +2 million workers is among North America’s most dynamic, with turnover rates below
American averages.
Finance: a growing and skilled labour force
Source: National Occupational Classification, 2018; Montréal Metropolitan Community, 2019.
Close to 110,000 finance specialists are employed
in Greater Montréal
The city’s financial workforce is on par with that of
other major financial centres:
Same professional titles and associations as
in NYC and London, i.e. CFA, PRM, FRM, CPA,
etc.
Same pro rata number of financial
professionals and FS association
memberships as in NYC and London, i.e. 2,500
CFA, 350 GARP, 4,781 PRMIA members, 16,000
CPA, etc.
11th largest CFA association worldwide
Occupations in number of jobs - Montréal
0111 - Financial Managers 7,000
0121 - Insurance, Real Estate and Financial Brokerage Managers 4,100
0122 - Banking, Credit and other Investment Managers 8,100
0414 - Other Managers in Public Administration 3,500
1111 - Financial Auditors and Accountants 25,000
1112 - Financial and Investment Analysts 11,200
1114 - Other Financial Officers 19,300
1312 - Insurance Adjusters and Claims Examiners 3,500
1434 - Banking, Insurance and other Financial Clerks 2,400
1435 - Collectors 2,200
2161 - Mathematicians, Statisticians and Actuaries 5,400
6231 - Insurance Agents and Brokers 10,000
6235 - Financial Sales Representatives 6,800
Total 108,500
16
IT: A growing and skilled labour force
Source: National Occupational Classification, 2018.
Ease of Recruitment
The IT industry counts 138,100 workers
directly in the tech industry (close to 1 in 10
jobs in the private sector).
Figure is even higher when IT employees
from outside the tech
industry are counted (public sector, non-tech
industries, etc.).
According to Aon Hewitt, Montréal ranked 3rd
in North America in the lowest overall risk
associated with recruiting, employing and
relocating workers.
IT occupations, number of jobs – Montréal
0213 - Computer, Information Systems and Telecommunication
Carriers Managers10,100
2133 - Electrical and Electronics Engineers 3,900
2147 - Computer Engineers (Except Software Engineers and
Designers)4,200
2171 - Information Systems Analysts and Consultants 31,100
2172 - Database Analysts and Data Administrators 4,300
2173 - Software Engineers and Designers 7,000
2174 - Computer Programmers and Interactive Media Developers 24,200
2175 - Web Designers and Developers 6,100
2281 - Computer Network Technicians 14,600
Others 32,600
Total 138,100
17
Thanks to four business schools and four university institutions with renown engineering programs,
Montréal boasts a highly qualified workforce.
A large pool of university students
Source: Ministère de l’Éducation et de l’Enseignement supérieur, 2019; compiled by Montréal International.
More than 31,000 university students
enrolled in programs related to Finance,
Banking and IT.
Close to 10,000 university graduates
join a workforce of 110,000 Finance
specialists and 137,000 in IT in
Montréal.
Finance, banking and IT
related programs
University students
enrolled in 2017-2018
Graduates
2017
Business Administration 12,950 4,943
Banking & Finance 5,575 1,694
Production Management 1,122 332
Computer Science 8,104 1,558
Computer Engineering 2,002 374
Mathematics 1,438 262
Applied mathematics 130 27
Probabilities and Statistics 190 35
TOTAL 31,511 9,225
18
QS Best Student Cities 2018 ranks Montréal as
the best student city in North America
Two universities in the world’s top according to
the QS World University Rankings 2019
McGill University (#33)
University of Montréal (#149)
An internationally renowned and bilingual
environment for its foreign students
Best student city in the Americas
Source: QS, 2019; QS, 2018; Canadian Business, 2017.
HEC Montréal’s intensive MBA program stands out:
Included on Forbes’ list of Best International
MBAs: One-Year Programs
Among Canada’s Top 10 Best MBA
Schools (2017) according to Canadian Business,
and ranked 6th best Canadian MBA School by QS
World University Rankings 2019
Home to the Montréal Institute of Structured
Finance and Derivatives
McGill University ranks 3rd in Canada
and 33rd worldwide
Mary Queen of the World Cathedral / Skyline of downtown © Tourisme Montréal
03Attractive Operating Costs and Incentives
20
Most competitive operating costs for banking operations
Note: The annual operating cost calculations are based on labor, property and utility costs in US$. Source: fDi Benchmark, 2019.
Total operating costs for banking operations 20 largest metropolitan areas in Canada and the U.S., 2019
100104
111118 118 119 119
123128 130 131 131 133 133 136
142
155
168172
181
Phila
delp
hia
Détr
oit
Mo
ntr
éal
Atlanta
Toro
nto
Mia
mi
Chic
ago
Tam
pa
Phoenix
Min
neapolis
San D
iego
Los A
ngele
s
Dalla
s
Denver
Housto
n
Seattle
Bosto
n
Washin
gto
n, D
.C.
New
York
City
San F
rancis
co
- 42%
Montréal = 100
Running a business costs less in
Greater Montréal than in any other
major metropolitan area in Canada
and the U.S.:
1st rank: The most competitive
operating costs of the 20 largest
metropolitan areas in Canada and the
U.S. (2019) for banking operations
25% cost advantage compared to
the average of the 20 largest
metropolitan areas in Canada and the
U.S. (2019)
21
Most competitive operating costs for software development
Note: The annual operating cost calculations are based on labor and property costs in US$.Source: fDi Benchmark, 2019.
Running a business costs less in
Greater Montréal than in any other
major metropolitan area in Canada
and the U.S.:
1st rank: The most competitive
operating costs compared to any
other major metropolitan area in
Canada and the U.S.
29% cost advantage compared to
the average of the 20 largest
metropolitan areas in Canada and the
U.S. (2019)
100 103
116124 124
128 128132 136
139 139 140 141 143 144
155
168
181 182
196P
hoenix
Mia
mi
Mo
ntr
éal
Toro
nto
Tam
pa
Détr
oit
Min
neap
olis
San D
iego
Atlanta
Dalla
s
Los A
ngele
s
Phila
delp
hia
Denver
Chic
ago
Housto
n
Seattle
Bosto
n
New
York
City
Washin
gto
n D
.C.
San F
rancis
co
- 45%
Total operating costs for software development20 largest metropolitan areas in Canada and the U.S., 2019
Montréal = 100
22
Median annual salaries* (US$) for eight typical professions in software development
Competitive IT salaries
Note: Salaries based on 5 years of experience, Computer systems design and related services (NAICS 541514) & Banking (NAICS 52111) | Currency exchange CA$1 = US$0.74. Source: Economic Research Institute, Inc., February 2019.
Montréal
MONTRÉAL with
E-business tax
credit applied(assume 100% eligibility)
Toronto Chicago Boston New YorkSan
Francisco
Software
Developer
Lead
$77,457 $54,120 $81,941 $116,847 $125,388 $133,985 $138,356
Software
Engineer$69,375 $48,563 $73,512 $101,063 $108,117 $114,503 $119,064
Software
Developer$68,736 $48,115 $72,845 $101,633 $108,741 $115,205 $119,761
Computer
Database
Analyst
$79,551 $55,686 $62,534 $86,291 $92,052 $96,434 $101,124
Finance
Manager$56,025 $39,217 $59,895 $83,816 $92,515 $102,538 $101,254
Financial
Analyst$50,289 $35,202 $53,777 $72,774 $78,176 $89,275 $85,597
Insurance
Agent$36,608 $27,026 $41,623 $54,176 $60,020 $60,297 $62,981
Accountant $44,570 $31,198 $47,718 $61,794 $66,935 $74,753 $72,575
IT salaries in Montréal are,
on average, 66% lower
than in major U.S. cities.
This difference is made
even greater thanks to the
E-Business tax credit that
can provide up to a 30% tax
credit on eligible
employees salaries (up to
$25,000/employee/year).
23
Affordable rent
The average real estate cost for a class A office
space CBD in Montréal is 30% less than Chicago
and 100% lower than New York
Currency exchange: CA$1 = US$0.76.Source: Cushman & wakefield, 2019.
Average office space rent (US$/sq.ft./yr)Six of the largest metropolitan areas in North America, 2019
Toronto
$78.1
Montréal Chicago
$31.3
Boston
$39.4
$63.6
$47.9
$61.6
+ 150%
San
Francisco
New
York
Place Ville Marie
24
Tailor-made incentives available
Industry credits
• Tax Credit for
E-Business Development
The E-Business tax credit is unique in North America and aims to foster the development of
information technologies. Refundable tax credit equal to 30% (24% refundable and 6% non-
refundable) of eligible salaries, up to $25,000 per employee per year.
• IFC Montréal Fiscal Measure
Refundable tax program for International Financial Centres (IFCs):
Covers up to 24% of employee salaries up to $18,000 per job per year: back-office operations,
financial leasing, foreign exchange operations, compliance, accounting, KYC, etc.
Research and development
• R&D tax credits
Québec: 14% tax credit on salaries and subcontractor fees paid in Québec. It is fully refundable,
whether or not the business makes a profit.
Canada: 15% federal tax credit on eligible activities and expenditures. Unused R&D tax credits
may be carried forward up to 20 years and carried back for three years. The combined measures
allow businesses to cut noticeably their R&D costs.
• Tax Holiday for Foreign Researchers
and Experts
Five-year Québec income tax exemption at the personal level:
100% of salary for the 1st and 2nd year; 75% for the 3rd year; 50% for the 4th year; 25% for the 5th
year.
Major and innovative projects
• ESSOR Fund for Major Projects
Provides support to major projects with refundable (interest-free & low interest loans) and non-
refundable contributions, loan guarantees. Investment projects with eligible expenditures of
$250,000 or more to start a new business or expand (including modernizing) an existing business.
Labour development
• Financial Assistance for
Job Creation and Training
25% of eligible costs for the implementation of a training program and 50% of costs incurred for
the creation of a human resources department with the creation of 50 jobs or more over two years.
25
E-business tax credit could cover up to 30% of your eligible employees’ salaries
Payroll
20 employees
@ $80,000/year
=
$1,600,000
Québec Credit
@ 30%
refundable
$1,600,000 * 30%
=
$480,000
Do you
have taxes
to be paid?
YES
NO
Your tax credit will be a maximum of
24%, as you are not eligible for the
supplemental 6% non-refundable
tax credit
1,600,000 * 24%
= $384,000
Your tax credit will be a maximum
of 30%
= $480,000
Note:1. This model takes into consideration recent changes made to certain tax credits (2012, 2014 and 2015) and is
thus valid as of fiscal 2019.2. All values are in $CA.3. The unused portion of the non-refundable tax credit can be carried back 3 tax years or forward 20 tax years.Source: Ministry of Finance of Québec, 2019 Compilation: Montréal International, 2019.
SCENARIO 1 ($)
Refundable tax credits for the
development of E-business (CDAE):
Covers up to 30% of employee salaries,
including 24% refundable, up to
$25,000 per employee per year
ASSUMPTIONS1,2
Foreign-controlled private company
20 eligible employees @ $80,000/year
100% of their work is related to eligible
activities for the E-business tax credit
26
R&D tax credits: 15% non-refundable from the government of Canada and 14% refundable from Québec
Note:1. This model takes into consideration recent changes made to certain tax credits (2012, 2014 and 2015) and is thus valid as of fiscal 2019.2. Up to 55% of qualifying salaries and wages, federal only: expenditures should be related to R&D activities.3. Only 80% of the amount paid to a subcontractor is eligible for a federal tax credit and 50% for Québec tax credit.4. Québec only: For SMEs (less than $50M assets) there is an SR&ED tax credit exclusion on the first $50K of R&D spending. For large companies (more than $75M assets) and
companies under foreign control, the exclusion applies on the first $225K of R&D spending. This amount is deducted of the qualifying salaries and wages.Source: Ministry of Finance of Québec, 2019; PWC, 2019. Compilation: Montréal International, 2019.
Canada
(Federal)Québec
Qualifying salaries and wages $1,500,000 (A) $1,500,000 (D)
Other eligible expenses @ 55%2 $825,000 (B) -
Subcontractor3 $160,000 (C) $100,000 (E)
Exclusion on the first $225,000 of R&D
expenditures4 - $(225,000) (F)
Total qualifying expenditures$2,485,000
(A) + (B) + (C)
$1,375,000
(D) + (E) - (F)
Refundable Québec credit @ 14% - $192,500 (G)
Non-refundable federal credit @ 15% $372,750 (H) -
Total tax credit $556,250 (G) + (H)
SCENARIO 2 ($)
Scientific Research and Experimental Development
(SR&ED) tax incentive program 2018
ASSUMPTIONS1
Private, foreign-controlled company, more than
$75M assets
15 eligible employees @ $100,000/year
100% of their work is related to eligible activities
Subcontractor: $200,000
27
Refundable tax credits for Scientific Research and Experimental Development (SR&ED) and E-business (CDAE)1:
E-business covers up to 30%, including 24% refundable, of employee salaries up to $25,000 per job per year
SR&ED covers 15% from the Government of Canada, and 14%, refundable, from the Government of Québec
Combination of E-business (CDAE) and SR&ED tax credits
Note:1. Company has to choose between the SR&ED or the E-business tax credit for the Québec credit.2. This model takes into consideration recent changes made to certain tax credits (2012, 2014 and 2015) and is thus valid as of fiscal 2019.3. Up to 55% of qualifying salaries and wages, federal only: expenditures should be related to R&D activities. 4. If the company has no taxes to be paid, the Québec credit will be 24%.Source: Ministry of Finance of Québec, 2019 - Compilation: Montréal International, 2019.
SR&ED CDAE
FEDERAL QUÉBEC
Qualifying salaries and wages $1,600,000 (A) $1,600,000 (C)
Other eligible expenses @ 55% of A3 $880,000 (B) -
Total qualifying expenditures $2,480,000 (A)+(B) $1,600,000 (C)
Federal credit @ 15% of total
qualifying expenditures $372,000 -
Québec credit @ 30%4 of total
qualifying expenditures - $480,000
Total credit $852,000
SCENARIO 3 ($)
Combination of the Québec refundable tax credit for
the development of E-business (CDAE) and the
federal Scientific Research and Experimental
Development (SR&ED), 2018
ASSUMPTIONS2
Foreign-controlled private company
20 eligible employees @ $80,000/year
100% of their work is related to eligible activities
100% of their work is related to activities eligible
for the CDAE and the SR&ED tax credits
28
Refundable tax program for International Financial Centres (IFCs):
Covers up to 24% of employee salaries up to $18,000 per job, per year
Tailor-made incentives
Note:1 Activities must involve at least one of the 25 Qualified International Financial Transactions (QIFT). 2 The transaction must cross a border (the client or the product is non-Canadian).3 Operations must be conducted by a corporation and employ at least 6 employees.* Back-office operations include but are not limited to fund accounting, registration of transactions, custody services, insurance or administration of insurance policies, processing of claims, entering transactions, transfer of funds and securities, reconciliation, etc.
SCENARIO 4 ($)
IFC Montréal Tax Measures
Salary paid $40,000 $50,000 $75,000
Tax credit per job $9,600 $12,000 $18,000
Tax credit for 20
employees$192,000 $240,000 $360,000
Tax credit for 100
employees$960,000 $1,200,000 $1,800,000
Tax credit for 300
employees$2,880,000 $3,600,000 $5,400,000
1 Dealing in securities
2 Clearing house services
3 Investment advising and
portfolio management
4 Deposits
5 Loans
6 Loans and deposits among
IFCs
7 Acceptance or issuance of
letters of credit
8 Financing by means of a bill of
exchange
9 Foreign exchange operations
10 Financial packaging
(engineering)
11 Development or design of new
financial products
12 Insurance brokerage
13 Reinsurance
14 Fiduciary services
15 Factoring services
16 Financial leasing
17 Organization of a qualified
investment fund
18 Administration of a
qualified investment fund
19 Management of a qualified
investment fund
20 Distribution of the shares
of a qualified investment
fund
21 International treasury
management
22 Back-office operations*
23 Documentary collection
24 Activities performed under
the Québec Immigrant
Investor Program
25 Discount operations
carried out regarding a
letter of credit or a
commercial instrument
SCENARIO 4 ($)
IFC Montréal Tax Measures
Qualified International
Financial Transactions
04
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